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Illinois approves reduced $82 million Nicor rate hike

Illinois approves reduced $82 million Nicor rate hike

Nicor Gas corporate office

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CHICAGO (WBBM Newsradio) – Illinois regulators approved an approximately $82 million increase in Nicor Gas delivery rates Thursday, reducing the utility’s original request by nearly two-thirds.

The settlement approved by the Illinois Commerce Commission cuts $139.2 million from Nicor’s request. Residential customers are expected to pay an average of $2.21 more per month for delivery beginning in January, according to the utility, compared with about $6 under its initial proposal.

The effect on individual bills will vary based on usage and customer classification.

The agreement also lowers the residential monthly fixed charge from $21.30 to $15. That reduction does not eliminate the overall delivery rate increase.

Consumer advocacy group Illinois PIRG said the lower fixed charge gives customers more control over their bills through energy efficiency and conservation, while criticizing the utility’s continued rate increases and infrastructure spending.

The commission also reinforced its earlier directive that Nicor adjust its low-income discount program to maintain an energy burden of 3% for participating customers. Nicor agreed to dismiss its pending appeal of the commission’s 2025 rate decision.

Customers struggling with utility bills can check their eligibility for Nicor’s low-income discount program and the state’s Low Income Home Energy Assistance Program.

Nicor delivers natural gas to 2.3 million customers across northern Illinois.